BILL NUMBER: SB 679	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   SEPTEMBER 3, 1999
	AMENDED IN ASSEMBLY   AUGUST 16, 1999
	AMENDED IN SENATE   JUNE 2, 1999
	AMENDED IN SENATE   APRIL 5, 1999

INTRODUCED BY   Senator Johnston
    (Coauthor:  Assembly Member Machado) 

                        FEBRUARY 24, 1999

   An act to amend  Section 42247 of the Education Code,
relating to elementary and secondary   Item
6610-001-0001 of Section 2.00 of Chapter 50 of the Statutes of 1999,
relating to  education, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 679, as amended, Johnston.   Elementary and secondary
education: desegregation costs   Education  .

   Existing law authorizes the reimbursement of a school district for
the amount necessary to pay any costs mandated by the courts.
Existing law authorizes the governing board of any school district
that maintains a program designed to remedy the harmful effects of
racial segregation that originated under a court mandate to submit a
claim for reimbursement to the Controller for costs of the program.
  The Budget Act of 1999 appropriates, among other
amounts, $2,190,847,000 for support of the California State
University.  Of this amount, the act specifies that $1,700,000 is for
conversion of the Stockton Developmental Center into the Regional
and Continuing Education Center at California State University,
Stanislaus.  The Budget Act of 1999 also declares the intent of the
Legislature to annually provide funds for this purpose through the
2001-02 fiscal year. 
   This bill would  require the Controller to propose to the
Legislature on or before March 1, 2000, a method for appropriately
reimbursing school districts for the cost of magnet school programs
ordered by a court pursuant to a desegregation program that
originated under a court mandate and were previously reimbursed
through a federal grant   delete the reference to the
2001-02 fiscal year from this declaration of legislative intent 
.  
   This bill would appropriate $600,000 from the General Fund to the
Superintendent of Public Instruction for allocation to the Stockton
Unified School District as reimbursement for audited court-ordered
desegregation costs in that school district.  
   (2) Existing law establishes public postsecondary, secondary, and
elementary schools throughout the state.  Among the public
postsecondary schools are the various institutions that comprise the
California State University system.  The public secondary and
elementary schools are administered by the various school districts
and county offices of education.
   This bill would appropriate, without regard to fiscal year,
$2,300,000 from the General Fund.  Of this amount, $1,300,000 would
be appropriated to the Trustees of the California State University
for allocation for the continuing conversion of the Stockton
Developmental Center into the Regional and Continuing Education
Center at California State University, Stanislaus.  The bill would
appropriate the remaining $1,000,000 to the Superintendent of Public
Instruction for allocation, in accordance with specified criteria, to
school districts and county offices of education to fund the
acquisition of school library materials.  To the extent that the
$1,000,000 amount is allocated to school districts, these funds would
be applied toward the minimum funding requirements for school
districts and community college districts imposed by Section 8 of
Article XVI of the California Constitution. 
   Vote:  majority.  Appropriation:   no   yes
 .  Fiscal committee:  yes. State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  
  SECTION 1.  Section 42247 of the Education Code is  
  SECTION 1.  Item 6610-001-0001 of Section 2.00 of Chapter 50 of the
Statutes of 1999 is amended to read: 


      6610-001-0001--For support of the California State
           University ....................................
2,190,847,000
           Schedule:
           (a) Support .................... 2,947,422,000
           (b) Reimbursements .........      -128,558,000
           (c) Amount payable from the
               Higher Education Fees and
               Income, CSU Fund
               (Item 6610-001-0498) ........ -628,017,000
           Provisions:
           1. The appropriations made in this item are
              exempt from Section 31.00 of this act,
              except as otherwise provided by the
              applicable sections of the Government
              Code referred to in Section 31.00.
           2. Of the amount appropriated in this item,
              $814,000 is available for transfer to the
              California State University and Colleges
              Special Projects Fund pursuant to Section
              25008.5 of the Public Resources Code, which
              allows state agencies to retain 50 percent
              of the financial benefits realized through
              energy savings projects.
           3. Of the amount appropriated in this item,
              $7,235,000 is provided for payment of
              energy service contracts in connection with
              the issuance of Public Works Board Energy
              Efficiency Revenue Bonds.
           4. Of the amount appropriated in this item,
              $350,000 is for transfer to the Affordable
              Student Housing Revolving Fund for the purpose
              of subsidizing interest costs in connection
              with bond financing for construction of
              affordable student housing at the Fullerton
              and Hayward campuses in accordance with
              Article 3 (commencing with Section 90085)
              of Chapter 8 of Part 55 of the Education Code.
           5. Of the amount appropriated in this item,
              $1,878,000 is for repayment of the $17,000,000
              financed for the California State University
              through a third party for deferred maintenance
              projects in the 1994-95 fiscal year.  It is the
              intent of the Legislature to annually provide
              funds for that repayment purpose through the
              2009-10 fiscal year.
           6. Of the amount appropriated in this item,
              $2,309,000 is for repayment of the $24,000,000
              financed for the California State University
              through a third party for deferred maintenance
              projects in the 1995-96 fiscal year.  It is the
              intent of the Legislature to annually provide
              funds for that repayment purpose through the
              2010-11 fiscal year.
           7. Of the amount appropriated in this item,
              $1,700,000 is for conversion of the Stockton
              Developmental Center into the Regional and
              Continuing Education Center at CSU, Stanislaus.
              It is the intent of the Legislature to annually
              provide funds for this purpose  through the
              2001-02 fiscal year  .
           8. Of the amount appropriated in this item,
              $2,000,000 is provided to support the Bilingual
              Teacher Recruitment Program.
           9. Of the funds appropriated in this item,
              $2,000,000 is provided for a teacher
              recruitment program to be operated
              by the California Center for Teaching Careers.
          10. Of the funds appropriated in Schedule (a),
              $15,000,000 is provided for outreach to
              be used to fund new and existing programs
              that are aimed at improving the chances for
              K-12 pupils from a wide diversity of
              backgrounds to become eligible and prepared
              for the California State University.  Of this
              total, $5,000,000 is provided for
              faculty-to-faculty alliance with high school
              teachers of English and mathematics, $4,000,000
              is provided for learning assistance programs in
              high school,  and  $2,000,000 is
provided for
              the Precollegiate Academic Development Program
              at the California State University, $2,000,000
              is for the California State University Educational
              Opportunity Program (Art. 6 (commencing with Sec.
               89521   89250  ), Ch. 2, Pt.
55, Ed. C.), and $2,000,000
              is for the California Academic Partnership Program
              (Ch. 11 (commencing with Sec. 11000), Pt. 7, Ed. C.).
          11. Of the amount appropriated in this item, $65,647,000
              is provided for student financial aid grants,
              including $48,285,000 for State University grants
              and $17,362,000 for grants pursuant to the
              California State University Educational
              Opportunity Program.  These financial aid funds
              shall be provided to needy students according
              to the nationally accepted needs analysis methodology.

  SEC. 2.  The sum of two million three hundred thousand dollars
($2,300,000) is hereby appropriated for expenditure, without regard
to fiscal year, from the General Fund in accordance with the
following schedule:
   (a) One million three hundred thousand dollars ($1,300,000) to the
Trustees of the California State University, for allocation for the
continuing conversion of the Stockton Developmental Center into the
Regional and Continuing Education Center at California State
University, Stanislaus.
   (b) One million dollars ($1,000,000) to the Superintendent of
Public Instruction, for allocation, as an equal amount per unit of
regular average daily attendance, to school districts and county
offices of education to fund the acquisition of school library
materials pursuant to Article 7 (commencing with Section 18180) of
Chapter 2 of Part 11 of the Education Code.  Each school district and
county office of education to which an allocation is made under this
subdivision shall meet all of the following criteria:
   (1) The school district or county office of education did not
receive an allocation for the 1998-99 fiscal year from funds
appropriated pursuant to Item 6110-149-0001 of Section 2.00 of the
Budget Act of 1998.
   (2) The school district or county office of education has approved
a districtwide school library plan pursuant to Section 18181 of the
Education Code.
   (3) The amount allocated per unit of average daily attendance to a
school district or county office of education pursuant to this
subdivision shall not exceed the amount allocated to a school
district or county office of education pursuant to Item 6110-149-0001
of Section 2.00 of the Budget Act of 1998.  amended to
read:
   42247.  (a) Notwithstanding any other provision of law,
reimbursements authorized by Sections 42243.9 and 42249 for
desegregation costs incurred in the 1985-86 fiscal year, and each
fiscal year thereafter, shall not exceed the following amounts:
   (1) For desegregation programs operating pursuant to a final court
order issued prior to the effective date of this section, or January
1, 1986, as appropriate, the amount calculated pursuant to Section
42247.3.
   (2) For desegregation programs initiated after the 1984-85 fiscal
year, the amount in excess of one-fifth of the audited costs approved
by the Controller for the first full year of operation, adjusted
pursuant to Section 42247.2, provided that the school district has
contributed in the prior fiscal year not less than one-fifth of the
audited costs approved by the Controller for that fiscal year.  For
purposes of this paragraph, desegregation programs initiated after
the 1984-85 fiscal year shall not include expansion of desegregation
activities by school districts that were reimbursed pursuant to
Section 42249 for desegregation costs incurred during the 1984-85
fiscal year, except as otherwise provided by Section 42247.2.
   (3) For all other desegregation programs, the amount in excess of
one-fifth of the audited desegregation costs approved by the
Controller and incurred in the 1984-85 fiscal year, adjusted pursuant
to Section 42247.2, provided that the school district has
contributed in the prior fiscal year not less than one-fifth of the
audited costs approved by the Controller for that fiscal year.
   (b) Claims for reimbursement of desegregation program costs shall
be subject to audit by the Controller to determine all of the
following:
   (1) That the costs and programs are for purposes of desegregation
or alleviation of the harmful effects of racial segregation, as
provided in the plan submitted by the district pursuant to Section
42247.1.
   (2) That the costs are costs in excess of the district's
expenditure levels for regular educational programs.
   (3) That the costs are neither excessive nor unreasonable.
   (c) School districts shall subject any claim for the reimbursement
of actual desegregation program costs to audit in accordance with
the standards and procedures established pursuant to subdivision (b)
of Section 42246.  Each claim for the payment of actual costs
submitted to the Controller shall be accompanied by the audit any any
related reports issued by the entity performing the audit, unless
the school district contracts with the Controller for the performance
of the audit.  This subdivision is not intended to require that
estimated current year claims be subjected to audit prior to
submission to the Controller.
   (d) Claims for reimbursement of desegregation program costs shall
not include costs for school construction, reconstruction,
replacement of facilities, purchase of facilities, purchase of land,
or modernization of facilities.
   (e) Notwithstanding any other provision of law, it is the intent
of the Legislature to enact legislation that would make an
appropriation to reimburse school districts for the full cost of
magnet school programs ordered by a court pursuant to a desegregation
program that originated under a court mandate and were previously
reimbursed through a federal grant.
  SEC. 2.  In accordance with the intent of the Legislature expressed
in subdivision (e) of Section 42247 of the Education Code, the
Controller shall, on or before March 1, 2000, propose to the
Legislature a method for appropriately reimbursing school districts
for the cost of magnet school programs ordered by a court pursuant to
a desegregation program that originated under a court mandate and
were previously reimbursed through a federal grant.  The proposed
method should optimize the continued delivery of the educational
program with the least disruption possible.
  SEC. 3.  The sum of six hundred thousand dollars ($600,000) is
hereby appropriated from the General Fund to the Superintendent of
Public Instruction for allocation to the Stockton Unified School
District as reimbursement for audited court-ordered desegregation
costs in that school district.